Sendas Distribuidora (ASAI3) Q4 2024 earnings summary

Executive summary

• Achieved record annual revenue of R$80.6 billion in 2024, up 10.7% year-over-year, with 15 new stores opened and the hypermarket conversion project completed, surpassing 300 stores in operation and over 1.5 million sqm of sales area.

• EBITDA margin (pre-IFRS16) rose to 5.7% (+0.4 p.p.), and net income (pre-IFRS16) increased 19.8% to R$930 million for the year, driven by operational leverage and expense control.

• Expansion into strategic cities, digital initiatives, and a resilient mix across social classes contributed to growth and brand strength.

• Recognized as a top employer and for sustainability, with a 10% reduction in emissions and increased diversity in leadership.

• Accelerated deleveraging, reducing net debt by R$571 million year-over-year and surpassing leverage guidance.

Financial highlights

• 4Q24 net sales reached R$22.1 billion (+9.4% YoY); 2024 sales totaled R$80.6 billion (+10.7% YoY).

• Adjusted EBITDA (pre-IFRS16) for 4Q24 was R$1.29 billion (+15.7%), with a margin of 6.4% (+0.3 p.p.); annual adjusted EBITDA was R$4.18 billion (+19.5%).

• Net income (pre-IFRS16) for 4Q24 was R$474 million (+38.2%), and for 2024 was R$930 million (+19.8%).

• Gross margin improved to 16.5% in 2024 (+0.3 p.p. YoY), with gross profit of R$12.2 billion (+12.9%).

• Cash availability increased 17% YoY to R$7.6 billion in 4Q24.

Outlook and guidance

• CapEx for 2025 is set at R$1.0–1.2 billion, with a target of around 10 new store openings, down from previous years to prioritize deleveraging.

• Net debt to EBITDA ratio guidance for end-2025 is ~2.6x, with a focus on accelerating deleveraging and maintaining strong cash generation.

• Store opening guidance for 2026 may be revised downward to match the more conservative expansion pace of 2025.